CK Hutchison Warns of Legal Action if Maersk Takes Over Panama Canal Port Operations

Hong Kong-based CK Hutchison Holdings Ltd. has warned A.P. Moller-Maersk A/S that it may pursue legal action if Maersk’s terminal subsidiary proceeds with operating two Panama Canal ports without its agreement.

The move follows a ruling by Panama Supreme Court that invalidated CK Hutchison’s contract to operate the ports of Balboa and Cristobal.

Panamanian authorities have asked APM Terminals, part of Maersk, to take over operations of the two terminals on an interim basis.

CK Hutchison said it had formally notified Maersk that any assumption of operations without its consent would cause damage to the group and could lead to legal recourse against APM Terminals.

The company stated on 12 February that it had also notified the Panamanian government of a dispute under an investment protection treaty in order to safeguard its rights and interests.

It said it had invited consultations to resolve the matter and was seeking extensive damages through arbitration in response to Panama’s decision.

A spokesperson for Maersk declined to comment on the warning and referred to the company’s previous statement issued on 30 January.

In that earlier statement, Maersk said it would follow all legal requirements and procedures in starting operations.

APM Terminals informed the Associated Press that it was not a party to the legal proceedings concerning the port contract.

The terminal operator said it had expressed interest to the Panamanian government in operating the ports temporarily to mitigate risks that could affect essential regional and global trade services.

The dispute relates to the Port of Balboa on the Pacific coast and Cristobal on the Atlantic side, both located at the entrances of the Panama Canal.

CK Hutchison’s subsidiary, Panama Ports Co., has operated the two facilities since 1997. In 2021, the company received a 25-year renewal of its contract.

In late January, Panama’s Supreme Court ruled that the contract granted to the subsidiary was unconstitutional.

The court ordered that before a new contract could be bid and awarded, the Danish group would take charge of the ports in the interim.

In 2025, US President Donald Trump alleged that China was running the Panama Canal. CK Hutchison had been negotiating a deal valued at $23 billion to sell its non-Chinese port subsidiaries to a consortium that included US investment firm BlackRock, but the transaction was stalled after Beijing intervened.

The Panama Canal links the Pacific and Atlantic oceans and handles roughly 40% of Washington’s container traffic each year. The waterway was built by the United States in the early 20th century and was transferred to Panamanian control in 1999.

Panamanian President José Raúl Mulino previously indicated that operations at the two ports would continue without interruption following the Supreme Court’s decision.

CK Hutchison stated that the continued operation of the ports now depends on actions taken by the Supreme Court and the Panamanian state, which it said are beyond its control.

References: ttnews, Reuters

Source: Maritime Shipping News